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Fundamentals

Token

The basic unit of text that AI models process — roughly 3/4 of a word in English. 'Unbelievable' is 3 tokens. Token limits determine how much text a model can process at once.

Why it matters

Tokens are how AI usage is measured and priced, and how limits are enforced. This matters practically: pasting a huge document can exceed a model's capacity or run up costs, and "the AI forgot the start of our chat" usually means you hit a token limit. Knowing tokens exist helps you understand billing on API tools and why very long inputs sometimes get truncated.

In practice

The word "unbelievable" might split into pieces like "un," "believ," and "able," so it counts as several tokens, not one. A rough rule of thumb: 1,000 tokens is about 750 English words. So if a tool allows an 8,000-token input, you can fit roughly 6,000 words, a longish article, but not an entire book, before you'd need to trim or split it.

Related terms

Put Token into practice

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